By Bloomberg News

(Bloomberg)– A Chinese shipbuilder stopped working to make a bond repayment due Monday, coming to be the 2nd such business to default in the onshore market this year.

Wuhan Guoyu Logistics Industry Group Co, which is based in the main district of Hubei, really did not move funds for rate of interest and primary repayment to the Shanghai Clearing House prior to the due time, according to a declarationMonday The company provided the 400 million yuan ($ 60 million) of 1 year bonds at 7 percent in 2015.

Chinese business are having problem with document financial obligation repayments in the 2nd fifty percent as Premier Li Keqiang looks for to reduce overcapacity with the economic situation expanding at the slowest rate in a quarter century. At the very least 18 regional yuan bonds have actually currently failed this year, going beyond the 7 for every one of 2015.

The shipbuilder stated onAug 1 it might not have the ability to pay off the notes due to a funding lack. The business additionally has 200 million yuan of safety and securities due onOct 28, according to Bloomberg information.

Another shipbuilderEvergreen Holding Group Co failed in May.

© 2016 Bloomberg L.P